Goodman Property Trust said on Friday it was undertaking 3 new development projects to meet rising customer demand.
One, at the Central Park Corporate Centre, Ellerslie, has been completed and another is 80% leased. In association with them, Goodman is refurbishing the childcare & gym facilities and adding a carpark building.
Mainfreight Ltd has leased the last available built space at the Highbrook Business Park and Goodman is undertaking another uncommitted development of similar size.
At Westney Industry Park in Mangere, DSL Logistics Ltd has committed to a 3000m² extension to its warehouse.
Chief executive John Dakin said: “Ongoing leasing success & high levels of customer inquiry continue to drive our development programme. To meet this demand and facilitate future growth, we are commencing new industrial & infrastructure projects.
“The developments, which have a total project cost of $33.4 million, are expected to add $2.8 million of annual income to the trust’s portfolio.”
The 2 new office buildings at Central Park will add 11,200m² of office accommodation to the $170 million office park. In the latest office development there, insurance company YOUI has committed to a new 9-year lease over 4600m². Youi Pty Ltd, which has entered the New Zealand market in the last year, is a subsidiary of South African group Rand Merchant Insurance Holdings Ltd. The 5-level campus-style facility is now 80% leased, 4 months ahead of its scheduled completion in January 2015.
The other new Central Park building, 5350m² completed in 2013, has long-term commitments from Genesis Energy Ltd & Restaurant Brands Ltd and was fully leased well ahead of scheduled completion.
Mr Dakin said: “The positive leasing outcomes & ongoing development activity at Central Park are the catalyst of new infrastructure projects that include the refurbishment of the childcare & gym facilities, together with the development of a new multi-level carpark building providing 600 more covered spaces.
“Customer demand is strong across the portfolio, and the new lease to Mainfreight at Highbrook means this substantial estate is now fully occupied. To facilitate the demand for industrial facilities in this location we are undertaking another uncommitted development of a similar size.
“The new 5400m² warehouse is of a scale & design that is expected to appeal to a range of companies seeking high quality space in one of Auckland best business locations.”
At Westney, DSL Logistics has signed a new 8-year lease over its expanded 7750m² premises, complemented by a 5-year lease over an adjoining facility.
“With the earlier design-build commitments from Steel & Tube and Ford, we have increased the volume of development activity announced in the last 6 months to around $80 million. Based on current demand, we expect to commence over $100 million of new projects this financial year.”
Mr Dakin said a buoyant investment market, with both local & offshore investors competing for stock, meant asset sales had become the trust’s preferred source of development funding: “A growth strategy focused on asset recycling is enhancing the portfolio and contributing to strong investment gains for the trust. The sale of the Carter Holt Harvey packaging facility means over $45 million of disposals have been achieved already this year. It is a successful programme that is helping fund an increasing level of development activity driven by a sustained lift in customer demand.
“Further disposals are planned and other properties are being actively marketed for sale as part of the trust’s asset recycling programme.”
Attribution: Company release.